Pennsylvania No. 4 state with lowest credit card debt: study

Lending Tree states that Americans, in total, have roughly $986 billion in credit card debt.

Pennsylvanians appear to be rather fiscally responsible in this regard, as a new study ranked the state among those with the least amount of such debt.

• SIMILAR STORIES: Pennsylvania one of the U.S.’s ‘most financially disciplined’ states: report

WalletHub conducted and published said study, which graded each of the 50 states plus Washington D.C. on factors such as residents’ median credit card balances; credit card payments; and how long it would take to pay them off. The data used came from sources such as the Federal Reserve as well as credit card agency, TransUnion.

WalletHub ranked Pennsylvania as 48th overall, meaning it was fourth in having the least amount of credit card debt in the United States. The state also ranked fourth when it came to having the shortest expected timeframe to pay off balances (11 months and 13 days).

“One of the leading causes of large amounts of credit card debt is overspending: buying unnecessary purchases that do not contribute to a person’s well-being,” explains Dorris Perryman, adjunct associate professor of accounting at Bristol Community College. “Paying the minimum amount on a high-interest credit card does not allow you to reduce the balance on the account.

“Falling for the rewards programs that establishments offer for your loyalty can also contribute to credit card debt. These programs come with a price of having to constantly buy more to receive less than the interest on their royalty cards. Unless you travel for work every day, it is best to stay away from these programs they do not benefit the customer but rather than the organization.”

Speaking of which, the state with the overall highest amount of credit card debt was Alaska. The state with the least was West Virginia.